It is hard to read a newspaper or listen to the radio without told how bad the economy is. Certainly, times are tough for many small business owners, painting contractors included. When times are tough, stress mounts. Leads slow down, customers hold on to their money more tightly, the bills seem to come in faster than revenues.
This can be a good time to assess why you own a business. If it is for financial freedom, you might be questioning that rationale. If it is to be your own boss, you might be rethinking that idea. No matter your reason, you should certainly enjoy what you are doing. Especially when times are tough.
Doing something that we dislike is never fun, and it can be even less fun when times are tough.
In the 24 years that I have owned a business I have been through several recessions. Each time I wonder if I care to weather another one. And each time I realize that I generally enjoy what I am doing. While that won't help pay the bills, it does help me when times are tough.
Wednesday, February 10, 2010
Monday, February 1, 2010
A Contractor Experience
I recently had the need to hire a contractor to repair a fence on one of my rental properties. The repair was not particularly difficult, but it was going to take more time than I cared to spend on it.
Several of the posts had rotted and the fence was beginning to lean. Since this is rental property, I did not care to spend the money for a brand new fence. Besides, the pickets and rails are in fine shape. I just wanted someone to add some new posts to stabilize the fence.
The first contractor I contacted didn't want to do that. He wanted to basically rebuild the fence, and his price reflected this. The second contractor suggested adding posts before I could mention that idea. His price also reflected that level of work.
Some of the pickets had to be removed in the process, but the intention was to re-use those pickets. The contractor later called and said that they had damaged quite a few pickets and he would have to charge me a little more. When I met with him to inspect the work, he informed me that he had spent $50 on materials but would only charge me $25 extra.
As a consumer, I welcomed this news. As a consultant to contractors, I cringed. He was paying me to repair my fence.
My suspicion is that he is looking for more business in the future. He knows that I am a member of a real estate group and probably figures that I will be buying more homes in the future. But that kind of thinking will get him into trouble. If he is leaving money on the table now with the hope of future work, why won't he do the same in the future? And more importantly, he may not have a future if this is a standard procedure.
Several of the posts had rotted and the fence was beginning to lean. Since this is rental property, I did not care to spend the money for a brand new fence. Besides, the pickets and rails are in fine shape. I just wanted someone to add some new posts to stabilize the fence.
The first contractor I contacted didn't want to do that. He wanted to basically rebuild the fence, and his price reflected this. The second contractor suggested adding posts before I could mention that idea. His price also reflected that level of work.
Some of the pickets had to be removed in the process, but the intention was to re-use those pickets. The contractor later called and said that they had damaged quite a few pickets and he would have to charge me a little more. When I met with him to inspect the work, he informed me that he had spent $50 on materials but would only charge me $25 extra.
As a consumer, I welcomed this news. As a consultant to contractors, I cringed. He was paying me to repair my fence.
My suspicion is that he is looking for more business in the future. He knows that I am a member of a real estate group and probably figures that I will be buying more homes in the future. But that kind of thinking will get him into trouble. If he is leaving money on the table now with the hope of future work, why won't he do the same in the future? And more importantly, he may not have a future if this is a standard procedure.
Monday, January 18, 2010
When in Rome
It is often said that when you are in Rome, do as the Romans do. The point of this cliche is that you should adapt yourself to your surroundings. While there is an element of truth in this, for the most part it is poor advice, particularly when applied to a paint contracting business.
If we applied this advice to a contracting business, we would adopt the practices of our competitors. We would do things the same way as "everyone" else. We would do nothing to differentiate ourselves. And where would this get us? The same place as everyone else.
I don't mean to imply that we should never do anything the same as our competitors. What I mean is that simply because others are doing something doesn't mean that it is a good thing. As my mother used to say, "Just because everyone is jumping off of a bridge doesn't mean it is something that you should do."
The principle of "best practices" is a far better guideline. "Best practices" refers to those procedures and tactics that consistently lead to the desired results. For example, if you want to have a successful painting company, follow those procedures and tactics that are used by other successful painting companies.
There is nothing inherently wrong with doing as the Romans. But we must we careful which Romans we are emulating.
If we applied this advice to a contracting business, we would adopt the practices of our competitors. We would do things the same way as "everyone" else. We would do nothing to differentiate ourselves. And where would this get us? The same place as everyone else.
I don't mean to imply that we should never do anything the same as our competitors. What I mean is that simply because others are doing something doesn't mean that it is a good thing. As my mother used to say, "Just because everyone is jumping off of a bridge doesn't mean it is something that you should do."
The principle of "best practices" is a far better guideline. "Best practices" refers to those procedures and tactics that consistently lead to the desired results. For example, if you want to have a successful painting company, follow those procedures and tactics that are used by other successful painting companies.
There is nothing inherently wrong with doing as the Romans. But we must we careful which Romans we are emulating.
Wednesday, January 6, 2010
Jump Start Your Painting Business
Are you tired of making less money than your employees? Are you tired of working 60, 70, or more hours a week? Are you tired of saying "next year will be better"?
Operating a successful paint contracting company does not need to be complicated. It just requires good business practices. Do you need more leads? Implement a marketing plan that includes effective strategies like customer retention and proximity marketing. Do you want motivated and happy employees? Empower them and get out of their way. Do you fret over low priced competition? Learn to sell more effectively by focusing on consumer education.
The reason most businesses fail is because the owner does not have the necessary business skills. He gets what Michael Gerber (author of The E-Myth) calls "entrepreneurial seizure". A skilled craftsman decides he is tired of working for someone else and hangs out his shingle--now he'll make the big bucks. The problem is, this seldom works out well. A skilled craftsman does not necessarily make a good business owner. The skill sets are much different. This 335-page manual covers virtually every aspect of the business side of owning a paint contracting company. This manual covers:
Operating a successful paint contracting company does not need to be complicated. It just requires good business practices. Do you need more leads? Implement a marketing plan that includes effective strategies like customer retention and proximity marketing. Do you want motivated and happy employees? Empower them and get out of their way. Do you fret over low priced competition? Learn to sell more effectively by focusing on consumer education.
The reason most businesses fail is because the owner does not have the necessary business skills. He gets what Michael Gerber (author of The E-Myth) calls "entrepreneurial seizure". A skilled craftsman decides he is tired of working for someone else and hangs out his shingle--now he'll make the big bucks. The problem is, this seldom works out well. A skilled craftsman does not necessarily make a good business owner. The skill sets are much different. This 335-page manual covers virtually every aspect of the business side of owning a paint contracting company. This manual covers:
-
Business Systems
-
Finance and Accounting
-
Marketing
-
Estimating
-
Sales
-
Production Management
-
Administration
- And more...
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